American Uranium Limited has reported significant progress at its Lo Herma ISR uranium project, completing extensive drilling and validating aquifer conditions that support in-situ recovery mining. The company is poised to update its resource estimates and advance development plans in 2026.
- Completed 50 resource expansion drill holes totaling ~16,300 metres
- Confirmed uranium mineralisation trends north of proposed Mine Units 1 and 2
- Hydrogeological testing validates aquifer suitability for ISR mining
- Staked 12 new mineral claims expanding project footprint
- Plans for 2026 include Mineral Resource Estimate update and scoping study
Drilling Success Expands Resource Potential
American Uranium Limited (ASX, AMU) has delivered a productive December quarter at its flagship Lo Herma ISR uranium project in Wyoming, USA. The company completed 50 resource expansion drill holes, covering approximately 16,300 metres, aimed at extending known uranium mineralisation trends north of the proposed Mine Units 1 and 2. Notably, drill hole LH-25-048 returned a standout intercept of 4.1 metres at 0.078% equivalent uranium oxide (eU3O8), including a higher-grade 1-metre section at 0.143% eU3O8. These results confirm continuity of mineralised sand units and support the potential for resource growth in the area.
Hydrogeological Testing Validates ISR Mining Feasibility
Beyond drilling, American Uranium completed critical hydrogeological pump tests on four monitoring wells within the project area. An independent report by Petrotek confirmed that aquifer properties such as transmissivity and hydraulic conductivity are consistent with other permitted in-situ recovery (ISR) uranium operations in Wyoming’s Powder River Basin. The tests demonstrated sustainable groundwater flow rates of around 20 gallons per minute with minimal aquifer drawdown, a key factor in de-risking the project’s ISR mining approach. The company plans to advance regional hydrogeologic modelling and further pump tests to support permitting and wellfield design.
Strategic Land Expansion and Forward Plans
During the quarter, AMU staked 12 new mineral claims totaling 96 hectares contiguous with the existing Lo Herma project boundary, strategically extending the project footprint along promising mineralised trends north of Mine Unit 2. These additions enhance the company’s exploration and development flexibility. Looking ahead, American Uranium intends to update its Mineral Resource Estimate and Exploration Target in 2026, aiming to increase resource confidence ahead of an updated scoping study. The company also plans to resume drilling with a focus on infill and strategic resource expansion.
Financial Position and Market Access
Financially, AMU reported exploration and evaluation expenditure of $547,000 for the quarter, with no substantive mining production activities. The company ended the period with cash and equivalents of approximately $1.94 million and access to an additional $308,000 in unused financing facilities, providing around 2.8 quarters of funding at current expenditure levels. Additionally, AMU completed a ticker code change to “AMUIF” on the OTCID market in North America, enhancing its visibility and accessibility to US investors.
Context and Outlook
American Uranium’s progress at Lo Herma comes amid a broader revival of nuclear energy and uranium mining in the United States. The company’s focus on ISR technology, which offers lower environmental impact and cost advantages, positions it well within this evolving sector. While the drilling and hydrogeological results are encouraging, the pending Mineral Resource Estimate update and scoping study will be critical to defining the project’s economic potential and advancing towards production.
Bottom Line?
With resource expansion and hydrogeological validation underway, American Uranium is setting the stage for a pivotal 2026 at Lo Herma.
Questions in the middle?
- How will the upcoming Mineral Resource Estimate update impact project valuation?
- What are the timelines and key hurdles for permitting based on hydrogeological findings?
- How might uranium market dynamics influence AMU’s development strategy and financing?